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Will There Be Blood? Incentives and Displacement Effects in Pro-Social Behavior
Open accessAbstract
We present evidence from nearly 14,000 American Red Cross blood drives and from a natural field experiment showing that economic incentives have a positive effect on blood donations without increasing the fraction of donors who are ineligible to donate. The effect increases with the incentive's economic value. However, a substantial proportion of the increase in donations is explained by donors leaving neighboring drives without incentives to attend drives with incentives; this displacement also increases with the economic value of the incentive. We conclude that extrinsic incentives stimulate pro-social behavior, but unless displacement effects are considered, the effect may be overestimated. (JEL D64, H41, I12)
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“Some incentives do not undermine motivation or behavior, such as verbal rewards (Deci et al. 1999), while others have neutral or positive effects on behaviors (Lacetera et al. 2012).”
From Unintended reward costs: the effectiveness of customer referral reward programs for innovative products and services (2019) · cites this paper as Lacetera et al. 2012
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“Lacetera et al. (2012, 2013a) also found that the effects are strongest for their highest valued economic incentive.”
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Adena, M., & Huck, S. (2019) · Management Science · doi:10.1287/mnsc.2018.3232 · Cited by 69
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“Ideally, this requires the experimental manipulation of intrinsic prosocial motivations cognitively independent from the outcome of interest, which is difficult outside of the lab (for an exception, see Lacetera et al., 2012).”
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Niza, C., Tung, B., & Marteau, T. M. (2013) · Health Psychology · doi:10.1037/a0032740 · Cited by 64
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“Some incentives do not undermine motivation or behavior, such as verbal rewards (Deci et al. 1999), while others have neutral or positive effects on behaviors (Lacetera et al. 2012).”
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“Recent studies have examined the effects of two major interventions: reminder message and individual reward (see Lacetera et al. 2012, 2013, and 2014).”
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Weidmann, C., Schneider, S. O., Weck, E., Menzel, D., Klüter, H., & Müller‐Steinhardt, M. (2014) · Transfusion Medicine and Hemotherapy · doi:10.1159/000365525 · Cited by 10
The ‘Donor of the Future Project’ — first results and further research domains
Sundermann, L. M., de Kort, W. L. A. M., & Boenigk, S. (2017) · Vox Sanguinis · doi:10.1111/vox.12484 · Cited by 11
Donor recruitment: motivate their hearts
Senaldi, E. (2019) · Annals of Blood · doi:10.21037/aob.2019.07.04 · Cited by 10
“Research shows incentives can have a stimulating effect (29,30), no effect (31,32), or a detrimental effect (33) on the number of donations made.”
BackgroundMotivation Crowding in Peer Effects: The Effect of Solar Subsidies on Green Power Purchases
Nauze, A. L. (2021) · The Review of Economics and Statistics · doi:10.1162/rest_a_01124 · Cited by 9
“While there are settings in which economic incentives are found to lower prosocial behavior, there are also many settings where incentives have no negative effect (see, e.g., Ariely et al., 2009; Lacetera et al., 2012; Ashraf et al., 2020; Lacetera et al., 2014; Rommel et al., 2015).”
BackgroundArriagada, J., Mena, C., Munizaga, M. A., & Schwartz, D. (2022) · Transportation · doi:10.1007/s11116-022-10288-7 · Cited by 9
“In line with our results, recent research has found that monetary incentives work better to encourage behavior when offered without combining them with an emphasis on cooperation (Lacetera et al. 2012; Niessen-Ruenzi et al. 2014; Lacetera et al. 2014; Schwartz et al. 2021, 2020).”
ResultLet me, or let George? Motives of competing altruists
Bergstrom, T. C., Garratt, R. J., & Leo, G. (2019) · Games and Economic Behavior · doi:10.1016/j.geb.2019.09.002 · Cited by 9
“[29] observe that in recent years, volunteer sources are more frequently failing to provide adequate supplies.”
Justified-envy-minimal efficient mechanisms for priority-based matching
Kwon, H., & Shorrer, R. I. (2026) · Games and Economic Behavior · doi:10.1016/j.geb.2026.01.003 · Cited by 9
“An extensive literature studies incentives for blood donation and the relation to market design (Slonim et al., 2014; Lacetera et al., 2012, 2013; Heger et al., 2020).”
Metadata
- Authors
- Lacetera, N., Macis, M., & Slonim, R.
- Affiliations
- University of Toronto (CA)
- Johns Hopkins University (US)
- The University of Sydney (AU)
- Venue
- American Economic Journal: Economic Policy
- Publisher
- American Economic Association
- Published
- 2012-02-01
- Volume
- 4
- Issue
- 1
- Pages
- 186-223
- ISSN
- 1945-7731 (ISSN-L)
- 1945-774X
- OpenAlex
- W2036522266
- Cited by
- 222
- References
- 20
- Citations by year
- 2026: 5 · 2025: 8 · 2024: 11 · 2023: 11 · 2022: 19 · 2021: 15 · 2020: 14 · 2019: 44 · 2018: 15 · 2017: 11 · 2016: 16 · 2015: 14 · 2014: 12 · 2013: 12 · 2012: 10
- FWCI
- 34.96
- Type
- journal article
- Language
- en
- Open access
- green
- www.aeaweb.org
- Locations
- American Economic Journal Economic Policy (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Archivio istituzionale della ricerca (Alma Mater Studiorum Università di Bologna) (submittedVersion)
- Topics
- Health Sciences › Medicine › Hematology › Blood donation and transfusion practices
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Experimental Behavioral Economics Studies
- Social Sciences › Sociology and Political Science › Nonprofit Sector and Volunteering
- Keywords
- blood donation, economic incentives, extrinsic rewards, displacement effects, prosocial behavior, incentive magnitude, donor eligibility, charitable giving
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